NZD/USD surges to near 0.6040 as investors digest Middle East tensions
- NZD/USD gains sharply to near 0.6040 as demand for risky assets improves despite tensions between Israel and Iran.
- Israel struck military and nuclear facilities in Iran, aiming to restrict them from building nuclear weapons.
- This week, the Fed is expected to leave interest rates steady in the range of 4.25%-4.50%.
The NZD/USD pair is up 0.5% to near 0.6040 during European trading hours on Monday. The Kiwi pair strengthens as demand for riskier assets has increased, while tensions between Israel and Iran remain intact. Theoretically, risky assets underperform, and demand for safe-haven bets, such as the US Dollar (USD), increases amid heightened geopolitical tensions.
Last week, the Israeli army launched a series of attacks on military bases and nuclear facilities of Iran early Friday to stop Tehran from building nuclear warheads.
The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, ticks down to near 98.00 after reversing early gains. Meanwhile, the New Zealand Dollar (NZD) outperforms its peers as the market sentiment has turned favorable for risky assets.
New Zealand Dollar PRICE Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | -0.13% | -0.29% | -0.14% | -0.56% | -0.53% | -0.04% | |
| EUR | 0.30% | 0.05% | -0.02% | 0.17% | -0.14% | -0.22% | 0.27% | |
| GBP | 0.13% | -0.05% | -0.04% | 0.11% | -0.18% | -0.27% | 0.21% | |
| JPY | 0.29% | 0.02% | 0.04% | 0.16% | -0.57% | -0.60% | -0.16% | |
| CAD | 0.14% | -0.17% | -0.11% | -0.16% | -0.36% | -0.39% | 0.10% | |
| AUD | 0.56% | 0.14% | 0.18% | 0.57% | 0.36% | -0.08% | 0.41% | |
| NZD | 0.53% | 0.22% | 0.27% | 0.60% | 0.39% | 0.08% | 0.49% | |
| CHF | 0.04% | -0.27% | -0.21% | 0.16% | -0.10% | -0.41% | -0.49% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
On the domestic front, the US Dollar will be influenced by the Federal Reserve’s (Fed) monetary policy announcement on Wednesday. According to the CME FedWatch tool, the Fed is expected to leave interest rates steady in the range of 4.25%-4.50%.
Investors will closely monitor the comments from Fed Chair Jerome Powell at the press conference, following the interest rate decision, to get cues about when the central bank will start reducing its key borrowing rates. The major highlight of the Fed policy would be the Fed’s dot plot, which shows where officials see interest rates heading in the near and long term.
Ahead of the Fed’s monetary policy announcement, investors will also focus on the Retail Sales data for May, which will be released on Tuesday. The Retail Sales data, a key measure of consumer spending, is expected to have declined by 0.7% on month.
Economic Indicator
Fed Interest Rate Decision
The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).
Read more.Next release: Wed Jun 18, 2025 18:00
Frequency: Irregular
Consensus: 4.5%
Previous: 4.5%
Source: Federal Reserve
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
